Maximum number of flower pots that are held in inventory


What is the maximum number of flower pots that are held in inventory in a given ordering cycle? A flower shop uses 800 clay pots a month. The pots are purchased at $2 each. Annual carrying costs are estimated at $0.60 per pot per year and ordering costs are $20 per order. The manager has been currently using an order size of 1600 flower pots per order.

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Operation Management: Maximum number of flower pots that are held in inventory
Reference No:- TGS083317

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